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Evaluation of Best Price Clauses in Online Hotel Bookings


Hunold, Matthias; Kesler, Reinhold; Laitenberger, Ulrich; Schlütter, Frank (2018). Evaluation of Best Price Clauses in Online Hotel Bookings. International Journal of Industrial Organization, 61:542-571.

Abstract

We analyze the best price clauses (BPCs) of online travel agents (OTAs) using meta-search price data of nearly 30,000 hotels in different countries. We find that BPCs influence the pricing and availability of hotel rooms across online sales channels. In particular, hotels publish their offers more often at Booking.com when the OTA does not use the narrow BPC, and also tend to promote the direct online channel more actively. Moreover, the abolition of Booking.com’s narrow BPC is associated with the direct channel of chain hotels having the strictly lowest price more often.

Abstract

We analyze the best price clauses (BPCs) of online travel agents (OTAs) using meta-search price data of nearly 30,000 hotels in different countries. We find that BPCs influence the pricing and availability of hotel rooms across online sales channels. In particular, hotels publish their offers more often at Booking.com when the OTA does not use the narrow BPC, and also tend to promote the direct online channel more actively. Moreover, the abolition of Booking.com’s narrow BPC is associated with the direct channel of chain hotels having the strictly lowest price more often.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Scopus Subject Areas:Social Sciences & Humanities > Industrial Relations
Physical Sciences > Aerospace Engineering
Social Sciences & Humanities > Economics and Econometrics
Social Sciences & Humanities > Economics, Econometrics and Finance (miscellaneous)
Social Sciences & Humanities > Strategy and Management
Physical Sciences > Industrial and Manufacturing Engineering
Language:English
Date:2018
Deposited On:25 Sep 2019 13:50
Last Modified:10 Apr 2021 00:00
Publisher:Elsevier
ISSN:0167-7187
OA Status:Green
Publisher DOI:https://doi.org/10.1016/j.ijindorg.2018.03.008
Other Identification Number:merlin-id:18310

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